Disposed

M.Sivasamy v. The Deputy commissioner of Income Tax (Benami Prohibition)

Madras HC13 May 2022WMP/11909/2022

Case brief

AI extract

What is this about?

The Court, sitting on vacation, observed that the writ petitioner deserves a full hearing regarding the maintainability of seeking an injunction against the Income Tax Initiating Officer. Directed the noticee to participate in the inquiry without final orders, and restrained the petitioner from creating encumbrances on the assets pending disposal.

What did the court decide?

Restraint from creating encumbrances on assets; directions to noticee to participate in inquiry without passing final orders.

M.Sivasamy Vs The Deputy commissioner of… — Civil Procedure and Limitation | Madras HC (2022)

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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( Special Original Jurisdiction )

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Friday, the Thirteenth day of May Two Thousand Twenty Two

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PRESENT

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THE HON’BLE MR.JUSTICE G.R.SWAMINATHAN

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W.M.P.Nos.11909, 11910, 11912 to 11927 of 2022

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W.P.Nos.12443, 12450, 12451, 12458, 12449, 12452, 12445, 12453,

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12454, 12459, 12447, 12448, 12446, 12460, 12461, 12455,

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12456 and 12457 of 2022

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M.SIVASAMY [ PETITIONER IN ALL THE PETITIONS]

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THE DEPUTY COMMISSIONER OF [ RESPONDENT IN ALL THE PETITIONS ] INCOME TAX(BENAMI PROHIBITION), INITIATING OFFICER ROOM NO:104, I FLOOR, INCOME TAX INVESTIGATION WING BUILDING, 46, MG ROAD, NUNGAMBAKKAM, CHENNAI 600 034.

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Petition praying that in the circumstances stated therein and in the affidavit filed therewith the High Court will be pleased

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1 WMP No.11909 of 2022 IN WP.12443/2022

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To issue an order of injunction restraining the respondent from proceeding with notice F.No.IO / PBPT / Bharathi / 441 dated 12.03.2022 under S.24(1) of the Prohibition of Benami property Transactions Act, 1988 read with notice F.No:IO / PBPT / Shobika Impex / 441-458 dated 12.4.2022 pending consideration of the instant writ petition

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2 WMP No.11910 of 2022 in WP.12445/2022

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To issue an order of injunction restraining the respondent from proceeding with notice F.No.IO / PBPT / Karthikeyan / 447 dated 12.03.2022 under S.24(1) of the Prohibition of Benami property Transactions Act, 1988 read with notice F.No:IO / PBPT / Shobika Impex / 441-458 dated 12.4.2022 pending consideration of the instant writ petition

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https://hcservices.ecourts.gov.in/hcservices/

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3 WMP No.11912 of 2022 in WP.12446/2022

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To issue an order of injunction restraining the respondent from proceeding with notice F.No.IO / PBPT / Gomathi / 446 dated 12.03.2022 under S.24(1) of the Prohibition of Benami property Transactions Act, 1988 read with notice F.No:IO / PBPT / Shobika Impex / 441-458 dated 12.4.2022 pending consideration of the instant writ petition

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4 WMP No.11913 of 2022 in WP.12447/2022

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To issue an order of injunction restraining the respondent from proceeding with notice F.No.IO / PBPT / Palanivelan / 448 dated 12.03.2022 under S.24(1) of the Prohibition of Benami property Transactions Act, 1988 read with notice F.No:IO / PBPT / Shobika Impex / 441-458 dated 12.4.2022 pending consideration of the instant writ petition

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5 WMP No.11914 of 2022 in WP.12448/2022

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To issue an order of injunction restraining the respondent from proceeding with notice F.No.IO / PBPT / Gopalakrishnan / 442 dated 12.03.2022 under S.24(1) of the Prohibition of Benami property Transactions Act, 1988 read with notice F.No:IO / PBPT / Shobika Impex / 441-458 dated 12.4.2022 pending consideration of the instant writ petition

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6 WMP No.11915 of 2022 in WP.12449/2022

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To issue an order of injunction restraining the respondent from proceeding with notice F.No.IO / PBPT / Shanmugavel / 449 dated 12.03.2022 under S.24(1) of the Prohibition of Benami property Transactions Act, 1988 read with notice F.No:IO / PBPT / Shobika Impex / 441-458 dated 12.4.2022 pending consideration of the instant writ petition

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7 WMP No.11916 of 2022 in WP.12450/2022

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To issue an order of injunction restraining the respondent from proceeding with notice F.No.IO / PBPT / Navaladi / 453 dated 12.03.2022 under S.24(1) of the Prohibition of Benami property Transactions Act, 1988 read with notice F.No.IO / PBPT / Shobika Impex / 441-458 dated 12.4.2022 pending consideration of the instant writ petition

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8 WMP No.11917 of 2022 in WP.12451/2022

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To issue an order of injunction restraining the respondent from proceeding with notice F.No.IO / PBPT / GV Arun/ 454 dated 12.03.2022 under S.24(1) of the Prohibition of Benami property Transactions Act, 1988 read with notice F.No:IO / PBPT / Shobika Impex / 441-458 dated 12.4.2022 pending consideration of the instant writ petition

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https://hcservices.ecourts.gov.in/hcservices/

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9 WMP No.11918 of 2022 in WP.12452/2022

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To issue an order of injunction restraining the respondent from proceeding with notice F.No.IO / PBPT / Santhi / 455 dated 12.03.2022 under S.24(1) of the Prohibition of Benami property Transactions Act, 1988 read with notice F.No:IO / PBPT / Shobika Impex / 441 - 458 dated 12.4.2022 pending consideration of the instant writ petition

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10 WMP No.11919 of 2022 in WP.12453/2022

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To issue an order of injunction restraining the respondent from proceeding with notice F.No.IO / PBPT / Kanagarajan / 456 dated 12.03.2022 under S.24(1) of the Prohibition of Benami property Transactions Act, 1988 read with notice F.No:IO / PBPT / Shobika Impex / 441 - 458 dated 12.4.2022 pending consideration of the instant writ petition

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11 WMP No.11920 of 2022 in WP.12455/2022

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To issue an order of injunction restraining the respondent from proceeding with notice F.No.IO / PBPT / Viswanathan / 443 dated 12.03.2022 under S.24(1) of the Prohibition of Benami property Transactions Act, 1988 read with notice F.No:IO / PBPT / Shobika Impex / 441 - 458 dated 12.4.2022 pending consideration of the instant writ petition

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12 WMP No.11921 of 2022b in WP.12454/2022

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To issue an order of injunction restraining the respondent from proceeding with notice F.No.IO / PBPT / Balamurali Krishnan / 450 dated 12.03.2022 un6der S.24(1) of the Prohibition of Benami property Transactions Act, 1988 read with notice F.No:IO / PBPT / Shobika Impex / 441 - 458 dated 12.4.2022 pending consideration of the instant writ petition

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13 WMP No.11922 of 2022 in WP.12456/2022

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To issue an order of injunction restraining the respondent from proceeding with notice F.No.IO / PBPT / Sugumar/ 457 dated 12.03.2022 under S.24(1) of the Prohibition of Benami property Transactions Act, 1988 read with notice F.No.IO / PBPT / Shobika Impex / 441 - 458 dated 12.4.2022 pending consideration of the instant writ petition

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14 WMP No.11923 of 2022 in WP.12457/2022

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To issue an order of injunction restraining the respondent from proceeding with notice F.No.IO / PBPT / Moorthy / 451 dated 12.03.2022 under S.24(1) of the Prohibition of Benami property Transactions Act, 1988 read with notice F.No:IO / PBPT / Shobika Impex / 441-458 dated 12.4.2022 pending consideration of the instant writ petition

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https://hcservices.ecourts.gov.in/hcservices/

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15 WMP No.11924 of 2022 in WP.12458/2022

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To issue an order of injunction restraining the respondent from proceeding with notice F.No.IO / PBPT / Navaneethan / 444 dated 12.03.2022 under S.24(1) of the Prohibition of Benami property Transactions Act, 1988 read with notice F.No:IO / PBPT / Shobika Impex / 441 - 458 dated 12.4.2022 pending consideration of the instant writ petition

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16 WMP No.11925 of 2022 in WP.12459/2022

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To issue an order of injunction restraining the respondent from proceeding with notice F.No.IO / PBPT / Sekar/ 458 dated 12.03.2022 under S.24(1) of the Prohibition of Benami property Transactions Act, 1988 read with notice F.No:IO / PBPT / Shobika Impex / 441458 dated 12.4.2022 pending consideration of the instant writ petition

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17 WMP No.11926 of 2022 in WP.12460/2022

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To issue an order of injunction restraining the respondent from proceeding with notice F.No.IO / PBPT / Selvarani / 452 dated 12.03.2022 under S.24(1) of the Prohibition of Benami property Transactions Act, 1988 read with notice F.No:IO / PBPT / Shobika Impex / 441- 458 dated 12.4.2022 pending consideration of the instant writ petition

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18 WMP No.11927 of 2022 in WP.12461/2022

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To issue an order of injunction restraining the respondent from proceeding with notice F.No.IO / PBPT / E.S.Mani / 445 dated 12.03.2022 under S.24(1) of the Prohibition of Benami property Transactions Act, 1988 read with notice F.No:IO / PBPT / Shobika Impex / 441 - 458 dated 12.4.2022 pending consideration of the instant writ petition

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Order : These petitions coming on this day for hearing upon perusing the petition and the affidavit filed in support thereof and upon hearing the arguments of M/S.NAVEENA D., Advocate for the petitioner in all the petitions and of M/S.M.SHEELA, SPECIAL PUBLIC PROSECUTOR(INCOME TAX) for the Respondent in all the petitions, the court made the following order:-

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Heard the learned senior counsel appearing for the writ petitioner and Ms.Sheela, learned Special Public Prosecutor appearing for the respondent.

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These writ petitions have been filed for prohibiting the respondent from invoking the provisions of the Prohibition of Benami Property Transactions Act, 1988. I am prima facie of the view that the contentions advanced by the learned senior counsel appearing for the petitioner deserve a full hearing. The learned Special Public Prosecutor appearing for the respondent has also raised objections regarding the very maintainability of these writ petitions. Since the Court is only on vacation sitting, I am not in a position to take up the writ petitions for final hearing. I https://hcservices.ecourts.gov.in/hcservices/ must also note that the respondent ought to be given an opportunity

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to file their counter-affidavit. If, in the meanwhile, the inquiry is allowed to be concluded, the writ petitions will become infructuous. In order to balance the rights of both, I direct the noticee to take part in the proposed enquiry. However, final orders shall not be passed by the authority. I also direct the writ petitioner not to create any encumbrance based on the subject shares. In other words, the writ petitioner will not avail any bank loan or create a third party interest on the strength of the assets which are the subject matter of the inquiry.

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The Writ Miscellaneous Petitions are disposed of.

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Post the writ petitions on 08.06.2022 before the portfolio Judge.

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Sub Assistant Registrar ( Statistics / C.S. ) High Court, Madras - 600 104. TO

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THE DEPUTY COMMISSIONER OF INCOME TAX(BENAMI PROHIBITION), INITIATING OFFICER ROOM NO:104, I FLOOR, INCOME TAX INVESTIGATION WING BUILDING, 46, MG ROAD, NUNGAMBAKKAM, CHENNAI 600 034.

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Order in W.M.P.Nos.11909, 11910, 11912 to 11927 of 2022 in

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W.P.Nos.12443, 12450, 12451, 12458, 12449, 12452, 12445, 12453, 12454, 12459, 12447, 12448, 12446, 12460,

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12461,12455, 12456 and 12457 of 2022

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Date :13/05/2022

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From 26.2.2001 the Registry is issuing certified copies of the Interim Orders in this format GS(18/05/2022)

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https://hcservices.ecourts.gov.in/hcservices/

M.Sivasamy v. The Deputy commissioner of Income Tax (Benami Prohibition)

Case brief

What is this about?

What did the court decide?

M.Sivasamy v. The Deputy commissioner of Income Tax (Benami Prohibition)

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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